Bos Glb Hldgs Regulatory News (BOS)

18 Feb 2005 09:10

Murchison United NL18 February 2005 ABN 59 009 087 852 HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2004 Murchison United NL Ground Floor 2 Centro Avenue SUBIACO WA 6008 MURCHISON UNITED NL (ABN 59 009 087 852) CONTENTS Directors' Report......................................... 3 Condensed Statement of Financial Performance.................. 4 Condensed Statement of Financial Position........................ 5 Condensed Statement of Cash Flows........................ 6 Notes to the Half-Year Financial Report........................ 7 Director's Declaration............................... 10 Auditor's Independence Declaration............................ 11 Independent Review Report..................................... 12 MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' REPORT The Directors present their report together with the financial report of theCompany for the half-year ended 31 December 2004 and the auditor's review reportthereon. Directors The names of the Company's Directors in office during the half-year and untilthe date of this report are as below. Directors were in office for this entireperiod unless otherwise stated. Glenn Robert Featherby (Non Executive Chairman - appointed 2 August 2004)Mark David Reilly (Executive Director - appointed 2 August 2004)David Hutchins (Non executive Director)Bruno Camari (resigned 2 August 2004)Paul Atherley (resigned 2 August 2004) Review of Operations The Company continues to investigate resource opportunities in Australia andinternationally to assess their appropriateness for the Company. Currently theseare focused on the Company's mining interests in the Cloncurry area inQueensland, Australia and reviewing the prospectivity for uranium in thecountries of Niger, Mali and The Republic of Guinea. Auditor's Independence Declaration We have obtained an independence declaration from our auditors, Ernst Young, aspresented on page 11 of the financial report. Dated at Perth this 18th day of February 2005. Signed in accordance with a resolution of the Directors. M Reilly ...................................................... M D ReillyManaging Director MURCHISON UNITED NL (ABN 59 009 087 852) CONDENSED STATEMENT OF FINANCIAL PERFORMANCE HALF-YEAR ENDED 31 DECEMBER 2004 2004 2003 Note $ $ Revenue from ordinary activities 3 5,002 10,567Expenses from ordinary activities 3 (340,758) (2,280,598) Loss from ordinary activities before relatedincome tax expense (335,756) (2,270,031) Income tax benefit relating to ordinary activities - - Loss from ordinary activities after relatedincome tax expense (335,756) (2,270,031) Net Loss (335,756) (2,270,031) Total changes in equity other than those resulting fromtransactions with owners as owners (335,756) (2,270,031) Basic earnings per share - cents per share (0.0017) (1.31)Diluted earnings per share - cents per share (0.0017) (1.31) MURCHISON UNITED NL (ABN 59 009 087 852) CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2004 As at As at 31 December 2004 30 June 2004 $ $CURRENT ASSETSCash assets 41,438 148,025Receivables 7,950 7,950Other 2,682 8,047Total Current Assets 52,070 164,022 NON-CURRENT ASSETSOther financial assets 23,480 25,284Property, plant and equipment 4,726 7,391Total Non-Current Assets 28,206 32,675 Total Assets 80,276 196,697 CURRENT LIABILITIESPayables 25,775 32,245Provisions 838,901 613,096Total Current Liabilities 864,676 645,341 Total Liabilities 864,676 645,341 Net Liabilities (784,400) (448,644) EQUITY / (DEFICIT)Contributed equity 37,554,895 37,554,895Accumulated losses (38,339,295) (38,003,539) Total Equity / (Deficit) (784,400) (448,644) MURCHISON UNITED NL (ABN 59 009 087 852) CONDENSED STATEMENT of Cash Flows HALF -YEAR ENDED 31 DECEMBER 2004 2004 2003 $ $ Cash flows from operating activities Cash payments in the course of operations (111,589) (779,783)Interest received 3,198 10,567 Net cash used in operating activities (108,391) (769,216) Cash flows from investing activities Proceeds from the sale of equity investments 1,804 - Net cash from investing activities 1,804 - Net (decrease)/increase in cash held (106,587) (769,216) Cash at the beginning of the financial period 148,025 1,018,265 Effect of exchange rate changes on the balances of cash held in foreign currencies - 8,779 Cash at the end of the financial period 41,438 257,828 MURCHISON UNITED NL (ABN 59 009 087 852) NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2004 1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT The half-year financial report does not include all notes of the type normallyincluded within the annual financial report and therefore cannot be expected toprovide as full an understanding of the financial performance, financialposition and financing and investing activities of the Company as the fullfinancial report. The half-year financial report should be read in conjunction with the AnnualFinancial Report of Murchison United NL as at 30 June 2004. It is alsorecommended that the half-year financial report be considered together with anypublic announcements made by Murchison United NL during the half-year ended 31December 2004 in accordance witht the continuous disclosure obligations arisingunder the Corporations Act 2001. (a) Basis of Accounting The half-year financial report is a general-purpose financial report, which hasbeen prepared in accordance with the requirements of the Corporations Act 2001,applicable Accounting Standards including AASB 1029 "Interim Financialreporting" and other mandatory professional reporting requirements(Urgent Issues Group Consensus Views). The half-year financial report has been prepared in accordance withthe historical cost convention. For the purpose of preparing the half-year financial report, the half-year hasbeen treated as a discrete reporting period. (b) Accounting Policies The accounting policies adopted are consistent with those applied in the 30 June2004 Annual Financial Report. (c) Going Concern The Company has a net liability position at 31 December 2004 of $784,400. TheDirectors have prepared the half-year financial report on a going concern basisbased on the considerations set out below: • Included in current provisions in the Statement of Financial Positionis an amount of $838,901, which is a provision for the settlement of theCompany's liability under the terms of the Deed of Company Arrangement ("DOCA")with creditors of Renison Bell Limited. This liability is to be settled via theissue of shares with no resultant cash outflows. On 3rd February 2005, a totalof 15,301,667 ordinary shares have been issued with an additional 4,207,649ordinary shares likely to be issued if claims are accepted by the DeedAdministrator. • On the 9th February 2005 the Company completed a capital raising tosophisticated clients of Hartleys Limited ("Hartleys"), raising a gross amountof $1,336,500 via the issue of 29,700,000 ordinary shares at $0.045 cents pershare. The agreement with Hartleys provides for an additional capital raising,on a best endeavours basis, of up to $1,263,500, by placing an additional28,077,777 shares at $0.045 cents per share. This raising is subject toshareholder approval at a general meeting of shareholders. MURCHISON UNITED NL (ABN 59 009 087 852) (d) Comparatives Where necessary, comparatives have been reclassified and respositioned forconsistency with current period disclosures. 2. SEGMENT INFORMATION Murchison United NL operates in one business segment, being the base metalmining industry and within one geographical segment, being Australia. 3. LOSS FROM ORDINARY ACTIVITIES 2004 2003 $ $(a) Specific Items Loss from ordinary activities before income tax includes the following revenues and expenses whose disclosure is relevant in explaining the financial performance of the entity: (i) Revenues from ordinary Activities Revenue from sale of goods - 10,567 Interest revenue 3,198 - Proceeds on sale of financial asset 1,804 - 5,002 10,567 (ii) Expenses Audit fees 10,000 15,000 Annual report costs 13,555 30,849 Carrying vale of other financial assets sold 1,804 - Communication costs 7,608 14,167 Consulting fees - 344,209 Depreciation and amortisation 2,665 8,662 Employee benefits - 26,946 Listing fees 23,204 46,770 Project assessment costs 36,989 23,301 Recognition of liability due under guarantee - 1,700,000 Settlement of Renison Bell Ltd creditors 225,805 - Share registry fees 10,360 10,907 Other 8,768 59,787 340,758 2,280,5984. CONTINGENT ASSET Contingent Asset At 31st December 2004 and subsequent to the settlement with other Renison BellLtd Creditors, Murchison United NL remains a creditor of Renison Bell Ltd.Depending on the proceeds from the sale of assets, including the Renison Belltin mine, and expenses of the Administration of Renison Bell Ltd, the Companymay receive a distribution in satisfaction of the outstanding liability. Due tothe uncertainty relating to the timing and amount of future proceedsquantification of the amount cannot be calculated with any certainty. MURCHISON UNITED NL (ABN 59 009 087 852) 5. SUBSEQUENT EVENTS (a) The Company offered, negotiated and entered into a Deed of CompanyArrangement ("DOCA") in connection with Renison Bell Limited ("RBL"), which wasapproved by creditors on 13 November 2003, offering "shortfall" creditorsadditional value. The Company offered all RBL creditors whose debt is notsatisfied in full, one fully paid ordinary share in the Company for every $1.00of unsatisfied debt. A minimum amount equivalent to a marketable parcel wasoffered to creditors. The DOCA was executed in December 2003. Murchison UnitedNL shareholders' approval was obtained at the Annual General Meeting held on the9th November 2004. On the 3rd February 2005 15,301,667 fully paid ordinaryshares were issued to the creditors of RBL for whom the Deed Administrator hasaccepted "Proofs of Debts". On the date of issue, the Company's shares weretrading at $0.09 and hence an additional expense of $719,178 was recorded,representing the increase in the market value of the Company's shares from$0.043 at 31 December 2004 to $0.09 at 3 February 2005. The financial effect ofthis event has not been recorded in the financial statements at 31 December2004. An additional number of shares amounting to 4,207,649 could be issued ifadditional "Proofs of Debts" currently under review are accepted by the DeedAdministrator of RBL. On subsequent reporting dates, the Company's provisionrelating to its obligations under the DOCA will be restated to reflectmanagement's best estimate of the remaining shares to be issued, multiplied bythe Company's share price on that date. (b) On the 9th February 2005 the Company completed a capital raising tosophisticated clients of Hartleys Limited ("Hartleys") raising a gross amount of$1,336,500 via the issue of 29,700,000 ordinary shares at $0.045 cents pershare. The agreement with Hartleys provides for an additional capital raising of$1,263,500 by placing an additional 28,077,777 shares at $0.045 cents pershares. This raising is subject to shareholder approval at a general meeting ofshareholders. 6. IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIALREPORTING STANDARDS The Company will be required to apply the Australian equivalents ofInternational Financial Reporting Standards (A-IFRS) from 1 July 2005. The firstannual report in compliance with A-IFRS will be presented for the year ended 30June 2006. The directors have performed a review of the A-IFRS requirements anddiscussed with external advisors the expected impact on the accounting policiesof the Company. At this point the directors do not expect any significant impactupon adoption of A-IFRS. MURCHISON UNITED NL (ABN 59 009 087 852) DIRECTORS' DECLARATION In the opinion of the Directors of Murchison United NL, I state that: 1. the financial statements and notes of the Company: (a) give a true and fair view of the financial position as at 31 December2004 and the performance for the half-year ended on that date of the Company;and (b) comply with Accounting Standatd AASB 1029 "Interim FinancialReporting" and the Corporations Regulations 2001; and 2. there are reasonable grounds to believe that the company will be ableto pay its debts as and when they become due and payable. On behalf of the Board Mark D ReillyManaging Director Dated at Perth this 18th day of February 2005 Auditor's Independence Declaration to the Directors of Murchison United NL In relation to our review of the financial report of Murchison United NL for thehalf-year ended 31 December 2004, to the best of my knowledge and belief, therehave been no contraventions of the auditor independence requirements of theCorporations Act 2001 or any applicable code of professional conduct. Ernst & Young J P DowlingPartnerPerth18 February 2005 11 Independent review report to members of Murchison United NL Scope The financial report and directors' responsibility The financial report comprises the statement of financial position, statement offinancial performance, statement of cash flows, accompanying notes to thefinancial statements, and the directors' declaration for Murchison United NL(the company), for the half-year ended 31 December 2004. The directors of the company are responsible for preparing a financial reportthat gives a true and fair view of the financial position and performance of thecompany, and that complies with Accounting Standards AASB 1029 "InterimFinancial Reporting", in accordance with the Corporations Act 2001. Thisincludes responsibility for the maintenance of adequate accounting records andinternal controls that are designed to prevent and detect fraud and error, andfor the accounting policies and accounting estimates inherent in the financialreport. Review approach We conducted an independent review of the financial report in order to make astatement about it to the members of the company, and in order for the companyto lodge the financial report with the Australian Stock Exchange and theAustralian Securities and Investments Commission. Our review was conducted in accordance with Australian Auditing Standardsapplicable to review engagements, in order to state whether, on the basis of theprocedures described, anything has come to our attention that would indicatethat the financial report is not presented fairly in accordance with theCorporations Act 2001, Accounting Standard AASB 1029 "Interim FinancialReporting" and other mandatory financial reporting requirements in Australia, soas to present a view which is consistent with our understanding of the company'sfinancial position, and of its performance as represented by the results of itsoperations and cash flows. A review is limited primarily to inquiries of company personnel and analyticalprocedures applied to the financial data. These procedures do not provide allthe evidence that would be required in an audit, thus the level of assurance isless than given in an audit. We have not performed an audit and, accordingly,we do not express an audit opinion. Independence We are independent of the company, and have met the independence requirements ofAustralian professional ethical pronouncements and the Corporations Act 2001.We have given to the directors of the company a written Auditor's IndependenceDeclaration, a copy of which is referred to in the Directors' Report. Inaddition to our review of the financial report, we were engaged to undertakeother non-audit services. The provision of these services has not impaired ourindependence. Statement Based on our review, which is not an audit, we have not become aware of anymatter that makes us believe that the financial report of Murchison United NL isnot in accordance with: (a) the Corporations Act 2001, including: (i) giving a true and fair view of the financial position ofMurchison United NL at 31 December 2004 and of its performance for the half-yearended on that date; and (ii) complying with Accounting Standard AASB 1029 "Interim FinancialReporting" and the Corporations Regulations 2001; and (b) other mandatory financial reporting requirements in Australia. Ernst & Young J P DowlingPartnerPerth18 February 2005 12 This information is provided by RNS The company news service from the London Stock Exchange